Amplifying Your Impact with Donor-Advised Funds
At Middlebrook Wealth, we believe that generosity is most powerful when it’s both meaningful and intentional. For many clients, donor-advised funds (DAFs) are one of the best ways to turn charitable intentions into a lasting legacy—while also unlocking valuable financial benefits.
What Is a Donor-Advised Fund?
Think of a donor-advised fund as your own personal endowment. You can contribute cash or appreciated stock to your DAF, and because the fund itself is a nonprofit, you receive immediate tax deductions for your gifts. The money in your DAF can be invested, giving it the potential to grow over time.
But perhaps the best part is that you get to decide when and how the money is distributed. Whether you want to give away a little each year, donate only the investment growth, or make a large gift all at once, you’re in control. You can give as much or as little as you want, whenever it feels right.
Who Can Benefit from a Donor-Advised Fund?
You don’t need to be a multimillionaire to open a donor-advised fund. In fact, DAFs often have very low minimums, making them accessible to a wide range of donors. Many of our clients open DAFs with amounts between $50,000 and $500,000, but some start with less and others with more. It’s all about creating a personal, flexible giving vehicle that suits your goals.
How Do I Get Started?
Setting up a donor-advised fund is a collaborative process. It’s important to have a thoughtful conversation with your financial advisor and your CPA. Some of the benefits of a DAF aren’t immediately obvious, and the best results come from aligning your giving strategy with your broader financial and estate plans.
For example, combining a DAF with other strategies—like IRA to Roth conversions—can help make your estate more efficient for your heirs while also maximizing your charitable impact.
Leaving Behind a Positive Legacy
A donor-advised fund isn’t just about giving during your lifetime—it’s a powerful way to instill values in your children and grandchildren. Many families use their DAFs as a way to come together, discuss what matters most, and decide where to direct their giving each year. We’ve even seen families gather around the holidays to make these decisions, turning generosity into a cherished tradition.
Empowering Your Future Together
A donor-advised fund isn’t just about giving during your lifetime—it’s a powerful way to instill values in your children and grandchildren. Many families use their DAFs as a way to come together, discuss what matters most, and decide where to direct their giving each year. We’ve even seen families gather around the holidays to make these decisions, turning generosity into a cherished tradition.
We know donor-advised funds can seem complex, but where there’s complexity, there’s opportunity. By collaborating closely with you, we help iron out the details so you can focus on what matters: using your resources to achieve your goals and live your values. If you’re curious about how a donor-advised fund could fit into your financial plan—or how you can create a legacy of giving for future generations—our team is here to help.
Advisory services provided by NewEdge Advisors, LLC doing business as Middlebrook Wealth, as a registered investment adviser. Securities offered through NewEdge Securities, LLC, Member FINRA/SIPC. NewEdge Advisors, LLC and NewEdge Securities, LLC. are wholly owned subsidiaries of NewEdge Capital Group, LLC.
The information in this material is not intended as tax or legal advice. Please consult your legal or tax professionals for specific information regarding your individual situation. This material is for information purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security.